Polaris Inc.

Consumer Discretionary
Industrial Specialties
www.polaris.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.55B
PE 17
Debt $2.18B
Cash $306.40M
EV $5.42B
FCF $318.10M

Earnings

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Sales & Net Margins

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Earnings	$203.50M
EBIT	$367.50M
ROE	15%
ROA	7%
FCF	$318.10M
Equity	$1.35B
Growth Stability	45%
PE	17.45
PEG	0.86
PB	2.64
P/FCF	11.16
P/S	0.46
Price/Cash	0.09
Debt/Equity	1.62
Debt/FCF	6.85
Net Margins	2%
Gross Margins	21%
Op. Margins	5%
Earnings CAGR	6%
Sales Growth YoY	-23%
Sales Growth QoQ	-12%
Sales CAGR	9%
FCF CAGR	3%
Equity CAGR	5%
Earnings Stability	0.07
Earnings Growth YoY	-82%
Earnings Growth QoQ	-60%
Earnings CAGR 5Y	20%

Sales CAGR 5Y	6%
FCF CAGR 5Y	-9%
Equity CAGR 5Y	8%
Earnings CAGR 3Y	0%
Sales CAGR 3Y	0%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	10%
Market Cap	$3.55B
Revenue	$7.71B
Dividend Yield	4%
Payout Ratio	72%
Assets	$5.63B
Total Debt	$2.18B
Cash	$306.40M
Shares Outstanding	55.8M
EV	5.42B
Earnings Score	7%
Moat Score	77%
Safety Score	51%
Final Score	45%
Working Capital	475.5M
Current Ratio	1.21
Gross Profit	$1.59B
Shares Growth 3y	20%
Equity Growth QoQ	0%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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Polaris designs and manufactures off-road vehicles, including all-terrain vehicles and side-by-side vehicles for recreational and utility purposes, snowmobiles, and on-road vehicles, including motorcycles, along with the related replacement parts, garments, and accessories. The firm entered the boat market after acquiring Boat Holdings in 2018, offering exposure to new segments of the outdoor lifestyle market. Polaris products retailed through more than 2,500 dealers in North America and through 1,500 international dealers as well as more than 30 subsidiaries and 90 distributors in more than 120 countries outside North America at the end of 2021.

SEC Filings

Direct access to Polaris Inc. (PII) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Polaris Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Polaris Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 6%

Stability 7%

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Polaris Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Polaris Inc..

Years

Calculation mode

= $3.8B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$318M	$326M	$334M	$343M	$351M	$360M	$369M	$378M	$388M	$398M	$407M	$4.1B
DCF		$296M	$276M	$257M	$240M	$224M	$208M	$194M	$181M	$169M	$157M	$1.6B
Value	$3.8B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	10%	10%	5%	3%	6%	5%	2%	6%	5%	6%	2%
ROA	-	30%	11%	12%	12%	11%	5%	14%	15%	13%	7%
ROE	-	46%	25%	19%	39%	29%	11%	40%	41%	35%	15%

Bad Net Margins (1.85%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	2.45	3.16	2.43	8.06	4.61	1.98	-511.74	11.16	3.73	6.85
Debt over Equity	0.26	0.48	1.32	1.03	2.34	1.68	1.39	1.92	2.31	1.35	1.62
Growth Stability	-	-	-	46%	100%	100%	45%	100%	100%	100%	45%

Bad Debt/FCF ratio (6.85)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (1.62)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (45%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	5%	-4%	20%	12%	12%	4%	17%	5%	4%	6%
Earnings YoY growth	-	0%	-53%	-19%	94%	-3%	-61%	296%	-9%	12%	20%
Equity YoY growth	-	14%	-12%	7%	-7%	28%	3%	7%	-10%	29%	8%
FCF YoY growth	-	-41%	90%	9%	-36%	60%	99%	-101%	-5K%	125%	-9%